Driggs Co. purchased a computer system on January 1, 2014 for $870,000, paying $150,000 down and...

Driggs Co. purchased a computer system on January 1, 2014 for $870,000, paying $150,000 down and agreeing to pay the balance in 6 equal annual installments of $120,000 payable and the end of each year beginning December 31, 2014. An assumed interest rate of 10.5% is implicit in the purchase price. What is the amount of interest expense recorded by the purchaser for the year 2015?

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jeff jeffy answered 1 year ago

X purchased a computer on December 31, 2019, for $121,800, paying $34,800 down and agreeing to...

X purchased a computer on December 31, 2019, for $121,800, paying $34,800 down and agreeing to pay the balance in five equal installments of $17,400 payable each December 31 beginning in 2020. An assumed interest rate of 8% is implicit in the purchase price. How do I find the discount on Notes Payable using BAII plus calculator (please state all buttons used) at 1)Date of purchase, which is Dec 31, 2019 2)Dec 31,2020 3)Dec 31, 2021

Bridgeport Corporation purchased a computer on December 31, 2016, for $113,400, paying $32,400 down and agreeing...

Bridgeport Corporation purchased a computer on December 31, 2016, for $113,400, paying $32,400 down and agreeing to pay the balance on five equal installments of $16,200 payable each December 31 beginning in 2017. An assumed interest rate of 8% is implicit in the purchase price. Prepare the journal entry at the data of purchase. Prepare the journal entry at December 31, 2017, to record the payment and interest (effective-interest method employed). Prepare the journal entry at December 31, 2018, to...

Sweet Corporation purchased a computer on December 31, 2016, for $132,300, paying $37,800 down and agreeing...

Sweet Corporation purchased a computer on December 31, 2016, for $132,300, paying $37,800 down and agreeing to pay the balance in five equal installments of $18,900 payable each December 31 beginning in 2017. An assumed interest rate of 9% is implicit in the purchase price. Prepare the journal entry at December 31, 2018, to record the payment and interest (effective-interest method employed). (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered....

Sarasota Corporation purchased a computer on December 31, 2016, for $121,800, paying $34,800 down and agreeing...

Sarasota Corporation purchased a computer on December 31, 2016, for $121,800, paying $34,800 down and agreeing to pay the balance in five equal installments of $17,400 payable each December 31 beginning in 2017. An assumed interest rate of 8% is implicit in the purchase price. a. Prepare the journal entry at the date of purchase. b. Prepare the journal entry at December 31, 2017, to record the payment and interest (effective-interest method employed). c. Prepare the journal entry at December...

Teal Corporation purchased a computer on December 31, 2019, for $132,300, paying $37,800 down and agreeing...

Teal Corporation purchased a computer on December 31, 2019, for $132,300, paying $37,800 down and agreeing to pay the balance in five equal installments of $18,900 payable each December 31 beginning in 2020. An assumed interest rate of 9% is implicit in the purchase price.New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places,...

Quatro Co. issues bonds dated January 1, 2017, with a par value of $870,000. The bonds’...

Quatro Co. issues bonds dated January 1, 2017, with a par value of $870,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $892,789. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over...

Larkspur Company purchased a computer system for $78,300 on January 1, 2019. It was depreciated based...

Larkspur Company purchased a computer system for $78,300 on January 1, 2019. It was depreciated based on a 8-year life and an $17,900 salvage value. On January 1, 2021, Larkspur revised these estimates to a total useful life of 4 years and a salvage value of $10,200. Larkspur uses straight-line depreciation. Prepare Larkspur’s entry to record 2021 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...

Bramble Company purchased a computer system for $73,400 on January 1, 2019. It was depreciated based...

Bramble Company purchased a computer system for $73,400 on January 1, 2019. It was depreciated based on a 7-year life and an $19,500 salvage value. On January 1, 2021, Bramble revised these estimates to a total useful life of 4 years and a salvage value of $10,500. Bramble uses straight-line depreciation. Prepare Bramble’s entry to record 2021 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...

Marigold Company purchased a computer system for $74,750 on January 1, 2019. It was depreciated based...

Marigold Company purchased a computer system for $74,750 on January 1, 2019. It was depreciated based on a 7-year life and an $17,700 salvage value. On January 1, 2021, Marigold revised these estimates to a total useful life of 4 years and a salvage value of $9,400. Marigold uses straight-line depreciation. Prepare Marigold’s entry to record 2021 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...

Becker Office Service purchased a new computer system on January 1, 2018, for $31,900. It is...

Becker Office Service purchased a new computer system on January 1, 2018, for $31,900. It is expected to have a five-year useful life and a $3,700 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal...

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